topic Taxes on RSUs granted in New York that vest in Florida in State tax filing

Taxes on RSUs granted in New York that vest in Florida

telljc — Wed, 03 Mar 2021 00:36:40 GMT

I've been granted RSUs that vest over 4 years in New York.

The first 1/4th vests after 1 year. Then the rest vests monthtly for the remaining 3 years.

I'm trying to determine what NY will tax if I move to Florida within the first year (before they vest) or in the third year.

Re: Taxes on RSUs granted in New York that vest in Florida

MarilynG1 — Wed, 03 Mar 2021 01:41:00 GMT

Yes, when your RSU vests it would be considered unearned income in the state where you reside when you receive it.

When you receive an RSU, you don't have any immediate tax liability. You only have to pay taxes when your RSU vests and you receive an actual payout of stock shares. At that point, you have to report income based on the fair market value of the stock.

Click this link for more info on RSUs or Stock Grants.

This link gives details on How to Allocate Income for a Part Year Resident .

Re: Taxes on RSUs granted in New York that vest in Florida

telljc — Wed, 03 Mar 2021 02:00:10 GMT

I know but my understanding is NY tries to take a percentage based on how many days in the 4 years I was in NY for, even if they vest later. Is that not the case?

Re: Taxes on RSUs granted in New York that vest in Florida

telljc — Tue, 09 Mar 2021 12:29:39 GMT

Once it's considered earned, how much will NY try to take after I've left?

Re: Taxes on RSUs granted in New York that vest in Florida

ThomasM125 — Tue, 09 Mar 2021 21:43:32 GMT

Basically, the way it works is you will divide your income from New York sources by your total income, then use that percentage to allocate your New York tax.

For instance, you report all of your income for the year as though it was earned in New York and take the deductions and credits allowed as if you were a New York resident to arrive at your New York taxable income, and then calculate your income tax like you normally would. Then, you multiply the tax by the percentage of income earned in New York to arrive at your New York income tax.

Re: Taxes on RSUs granted in New York that vest in Florida

slori1982 — Thu, 04 Jul 2024 16:18:24 GMT

One follow-up question to this topic. If the individual subsequently sells the shares that were included in compensation for a capital gain, is that capital gain subject to tax in NYS?

Re: Taxes on RSUs granted in New York that vest in Florida

TomD8 — Fri, 05 Jul 2024 13:34:12 GMT

@slori1982 --

A capital gain from the sale of stock is taxable by your state of residence at the time the sale is made.